Neighborhood BRRRR Pittsburgh

Pittsburgh, Pennsylvania
BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Neighborhood BRRRR Pittsburgh

Kelly Cynamon
Member since 2020 · 18 posts · 18 votes

Hi all: newer investor looking to BRRRR my first one for a LTR. I'd flip but would rather keep it.
I was about to put an offer down on a home in homestead however prop mgr saying horrible for rentals? Even w a rehab. 

Anyone have any thoughts on what areas are still good for BRRRR (I can leave money in deal) in the greater Pittsburgh area? I am out of town so relying on a realtor to send me deals.

Would love everyone’s thoughts

Thx! 

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Trent Dues
Title Representative · Pittsburgh, PA · Member since 2023 · 82 posts · 51 votes
2y

I've recently seen an uptick in the Greenfield neighborhood. There appear to be businesses moving in to this area, including a new brewery/speakeasy concept, it has amazing access to the Parkway, and is neighbored by Schenley Park. There are also a ton of duplexes that make it ideal for househacking. Sale prices also appear to be relatively low, while the area makes a transition to becoming more gentrified.  

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  • Cole Booth
    Lender · Springfield, MO · Member since 2023 · 16 posts · 15 votes
    2y

    Hey Kelly, 

    You can rehab a property without "flipping" it. Once the rehab is complete, you only need to wait 90 days for the property to season to close on a c/o or r/t loan after you secure a tenant (for the best rates/terms).

    You may look into Baltimore for rent ready properties that cashflow or Akron/Canton Ohio for properties that yield healthy returns on rehabs. Every area will have its strength and weakest, just make sure you find what is right for you. 

    2Reply
  • Wade Savage
    New to Real Estate · Pittsburgh · Member since 2023 · 8 posts · 5 votes
    2y

    Hello! As a fellow investor in the Pittsburgh area, I can recommend several neighborhoods that have demonstrated promise for the BRRR strategy. Areas like Lawrenceville, East Liberty, Bloomfield, and Highland Park have exhibited favorable potential due to their proximity to amenities, transportation, and the continuous growth of the local economy. Also check in Canegie, and the Coraopolis areas as well.

    When considering properties for the BRRR strategy, it's essential to focus on those with an After Repair Value (ARV) and Loan-to-Value (LTV) of at least $75,000. This approach will significantly increase your chances of securing the necessary financing for the refinance, thereby maximizing your potential returns and minimizing risks.

    While the market can experience fluctuations, staying updated on current trends and regularly consulting with local real estate experts will provide you with valuable insights and potential opportunities that align with your investment objectives. Best of luck with your investment endeavors here in Pittsburgh!

    1Reply
  • Kelly Cynamon
    OP
    Member since 2020 · 18 posts · 18 votes
    2y

    Thx! Yeah ARV I am looking at are around 150-220k so should be ok.

    Thoughts on homestead? 

    0Reply
  • Miranda Micire
    Member since 2023 · 1 post · 0 votes
    2y
    Quote from @Kelly Cynamon:

    Thx! Yeah ARV I am looking at are around 150-220k so should be ok.

    Thoughts on homestead? 

    Hi! Homestead is not bad but it depends on the area and the property. What’s the address? You really want to make sure your numbers are solid and even under estimate the ARV so it still makes sense. I would look for off market properties if I were you. Sign up for wholesale emails. Or go direct to seller. The properties I see listed on the MLS usually don’t make a ton of sense for a BRRR unless you offer a lot under asking. I hope that helps! 
    0Reply
  • Wade Savage
    New to Real Estate · Pittsburgh · Member since 2023 · 8 posts · 5 votes
    2y
    Quote from @Miranda Micire:
    Quote from @Kelly Cynamon:

    Thx! Yeah ARV I am looking at are around 150-220k so should be ok.

    Thoughts on homestead? 

    Hi! Homestead is not bad but it depends on the area and the property. What’s the address? You really want to make sure your numbers are solid and even under estimate the ARV so it still makes sense. I would look for off market properties if I were you. Sign up for wholesale emails. Or go direct to seller. The properties I see listed on the MLS usually don’t make a ton of sense for a BRRR unless you offer a lot under asking. I hope that helps! 

     I agree with Miranda!

    0Reply
  • Alex HilemanPro Member
    Real Estate Agent · Pittsburgh, PA · Member since 2023 · 225 posts · 147 votes
    2y

    Hi @Kelly Cynamon, I'm a local agent in Pittsburgh and I work specifically with investors.

    Homestead is very hit or miss and it depends on what street or area the property is in. I am seeing a lot of rental activity in Bloomfield, South Side, East Liberty, Highland Park, and parts of the North Side. Lawrenceville is very hot right now and the surrounding areas are also appreciating. 

    Have you ever used Rentometer? You can search any neighborhood or address to get a rough idea of the rents. The average rents in Pittsburgh are $1,362 for a 1 bed and $1,665 for a 2 bed. You can compare the property you're considering to see how it stacks up against the average rent. 

    I'd be happy to chat more specifics!

    [email protected]412-804-1171
    1Reply
  • Liam Maher
    Miami, FL · Member since 2022 · 60 posts · 39 votes
    2y

    Here's a gentrification heatmap for Pittsburgh...pink is gentrified, blue is little to no gentrification. I'd stick with a few of the orange/yellow areas that are more up-and-coming. Areas around Perry South seem fairly near a university, and also have a couple of gyms and independent coffee shops in the area. Cash flow situation looks like it has a couple of properties between breakeven and 3/4% CoCR, which I guess isn't terrible considering rates.

    0Reply
  • Jeremy TaggartBusiness Member
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 646 votes
    2y

    @Kelly Cynamon Homestead is fine for rentals. Just would recommend being on a good block or better section to make it easier to attract good tenants. Generally a lower income area but you can find good tenants especially if you make the unit nice. It's shown some promise the last few years being on the upswing.

    If you are looking to BRRRR a single family home, you almost have to stay under 200k for the numbers to make sense on the back end. Once you go above that, rent/price ratios start to become less favorable to the point where your back end LTV will be low if buying under an LLC/commercial loan. Or if you are buying under personal name it will be negative cash flow at 75-80% LTV. I would probably stick to multi units if you can given that issue with the higher rates right now, although multis are typically harder to find deals where you can get equity in them compared to single family homes.

    Also generally easier to find deals outside of Allegheny County. Less competition makes it easier to get those chunks of equity. Tend to be able to get similar rent/price ratios as well in decent areas compared to the rougher areas in/around the city. Just wouldn't expect as much long term upside the further you get away from the city but that depends on the specific area. 

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  • Jeremy TaggartBusiness Member
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 646 votes
    2y
    Quote from @Liam Maher:

    Here's a gentrification heatmap for Pittsburgh...pink is gentrified, blue is little to no gentrification. I'd stick with a few of the orange/yellow areas that are more up-and-coming. Areas around Perry South seem fairly near a university, and also have a couple of gyms and independent coffee shops in the area. Cash flow situation looks like it has a couple of properties between breakeven and 3/4% CoCR, which I guess isn't terrible considering rates.

     @Liam Maher idk where you found that map but it isn't accurate for quite a few of the areas FYI

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  • Liam Maher
    Miami, FL · Member since 2022 · 60 posts · 39 votes
    2y
    Quote from @Jeremy Taggart:
    Quote from @Liam Maher:

    Here's a gentrification heatmap for Pittsburgh...pink is gentrified, blue is little to no gentrification. I'd stick with a few of the orange/yellow areas that are more up-and-coming. Areas around Perry South seem fairly near a university, and also have a couple of gyms and independent coffee shops in the area. Cash flow situation looks like it has a couple of properties between breakeven and 3/4% CoCR, which I guess isn't terrible considering rates.

     @Liam Maher idk where you found that map but it isn't accurate for quite a few of the areas FYI


     Oh I appreciate you letting me know..which areas don't look right to you?

    0Reply
  • Kelly Cynamon
    OP
    Member since 2020 · 18 posts · 18 votes
    2y

    Hey Jeremy 

    Thanks. Under 200k arv you mean? Or under 200 for purchase? 

    0Reply
  • Jeremy TaggartBusiness Member
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 646 votes
    2y

    @Kelly Cynamon yeah ARV. Once you go above about 200k ARV the rents tend to not keep up making rent/price ratios more unfavorable for the refi on the backend. Caveats to that obviously but that's generally the case for single family homes in most areas here.

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  • Jeremy TaggartBusiness Member
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 646 votes
    2y

    @Liam Maher oh man more than I could spend time on in one forum post haha

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  • Jamie DietzBusiness Member
    Lender · Pittsburgh, PA · Member since 2015 · 175 posts · 90 votes
    2y
    Quote from @Liam Maher:

    Here's a gentrification heatmap for Pittsburgh...pink is gentrified, blue is little to no gentrification. I'd stick with a few of the orange/yellow areas that are more up-and-coming. Areas around Perry South seem fairly near a university, and also have a couple of gyms and independent coffee shops in the area. Cash flow situation looks like it has a couple of properties between breakeven and 3/4% CoCR, which I guess isn't terrible considering rates.


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  • Jamie DietzBusiness Member
    Lender · Pittsburgh, PA · Member since 2015 · 175 posts · 90 votes
    2y

    What is the source of this map? 

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  • Trent Dues
    Title Representative · Pittsburgh, PA · Member since 2023 · 82 posts · 51 votes
    2y

    I've recently seen an uptick in the Greenfield neighborhood. There appear to be businesses moving in to this area, including a new brewery/speakeasy concept, it has amazing access to the Parkway, and is neighbored by Schenley Park. There are also a ton of duplexes that make it ideal for househacking. Sale prices also appear to be relatively low, while the area makes a transition to becoming more gentrified.  

    3Reply
  • Nannette A. Smith-Simpson
    Member since 2023 · 3 posts · 0 votes
    2y

    Nannette Simpson.

    Brand new real estate investor. I am trying to learn all the different tragedy in real estate investing. And I'm trying to set up my LLC. Does anyone know of a good company to do it with. Please let me know. Thank you.

    0Reply
  • Kelly Cynamon
    OP
    Member since 2020 · 18 posts · 18 votes
    2y

    What does everyone think of the penn hill area? For a LTR

    0Reply
  • Kelly Cynamon
    OP
    Member since 2020 · 18 posts · 18 votes
    2y
    Quote from @Nannette A. Smith-Simpson:

    Nannette Simpson.

    Brand new real estate investor. I am trying to learn all the different tragedy in real estate investing. And I'm trying to set up my LLC. Does anyone know of a good company to do it with. Please let me know. Thank you.

    Prime it’s called for an LLC east and quick 
    0Reply
  • Nannette A. Smith-Simpson
    Member since 2023 · 3 posts · 0 votes
    2y

    Thank you kevin for the info, greatly appreciated🙏🏾

    0Reply
  • Nannette A. Smith-Simpson
    Member since 2023 · 3 posts · 0 votes
    2y

    Thank you Kelly Cynamon for the information about the LLC,Greatly appreciated.🙏🏾

    0Reply
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